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    Ready, Get Set...Change!The Impact of Change on WorkforceProductivity and Engagement

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    Table of Contents

    A Wo o h Ps 02

    Abo hs s 03

    oW & sA 04

    Ready, Get SetChange! 04

    s 08

    Imperatives for Change Management 08

    Creating Change That Works for Your Organization 14

    Moving to the Next Level: Agile and Ready 21

    oso 22

    obos 23

    Abo h AA 24

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    A Word From the PresidentEconomic change is driving an increasing need for organizations

    to adapt quickly and adeptly to dynamic market conditions. How

    companies and their leaders manage change and engage their

    workforce in the process can significantly impact their ability to

    achieve strategic business objectives.

    Right Management conducted research examining the relationship

    between effective change management and engagement,

    revealing key drivers and behaviors impacting success. When

    planning for organizational change from mergers or acquisitions,

    restructurings or shifts in business strategy our research findings

    and recommendations will help you to address the strategies and

    positive business outcomes needed to bring focus and ensure your

    organizations capability to function effectively.

    As a leader of workforce management strategy in your company,

    we hope this research provides valuable information that will help

    you to create sustainable competitive advantage through enhanced

    workforce performance.

    My colleagues and I look forward to continuing to provide you with

    research, insights and fresh perspectives to ensure you have the

    information, resources and solutions needed to effectively align your

    business strategy with your talent strategy.

    J.

    President & Chief Operating Officer

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    LEADING ORGANIZATIONAL CHANGE 3

    About This StudyTo arrive at a clearer understanding of engagement drivers, Right

    Management conducted a global study of engagement among

    28,810 employees from 10 major industry sectors in 15 countries.

    Seeking to determine the factors most closely associated with driving employee

    engagement, participants were asked to complete a survey instrument of 100 items,

    grouped into three themes. Respondents self-reported on attitudes, performance andconditions directly related to the effectiveness of their organization. Responses were then

    assessed against their self-reported levels of engagement across eight factors measuring

    commitment, satisfaction, pride, and advocacy. The results provide valuable insights into

    the correlation between engagement and key factors playing a critical role in effectively

    implementing and executing change. Data was collected from November 2008 to January

    2009. Most respondents (91%) were from private corporations employing 50 or more

    people, with revenues ranging from under $1 million to over $1 billion. The study used a

    stratified sample of employees that matched the workforce population in each country on

    several factors, including industry, size of organization, gender, and age.

    os

    Australia, Brazil, Canada, China, Denmark, France, Germany, India, Japan, New Zealand, Norway, South Korea, Sweden,

    United Kingdom and the United States

    NORTH AMERICA

    SOUTH AMERICA

    MIDDLE EAST

    AND AFRICA

    EUROPE

    JAPAN

    ASIA-PACIFIC

    ss

    Agriculture, forestry and fishing; Mining and quarrying; Manufacturing; Electricity, gas and water supply; Construction;

    Wholesales and retail trade; Restaurants and hotels; Transportation, storage and communication; Finance, insurance,

    real estates and business services; Government, social and personal services.

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    LEADING ORGANIZATIONAL CHANGE4

    Our research serves to demystify the change process and highlight key drivers that senior

    leaders can use effectively to improve change management initiatives and results.

    Our research helps organizations transform the complexity and confusion surrounding

    change management into a highly informed, integrated improvement process that is no

    longer out of reach.

    Most organizations are working in dynamic environments and experiencing change in many

    forms, such as the execution of a new business strategy, restructurings, introduction of new

    policies, acquisitions, mergers, relocations or the implementation of new technology. In order

    to optimize organizational performance, companies must be adept at planning, implementingand managing change on an ongoing basis not just as an atypical event.

    Although vital to organizational success, companies seldom plan, implement and execute

    effective change management processes as part of their workforce management strategy.

    Failure to do so can severely impair a companys performance and its very ability to compete.

    The dynamics of change, while complex, are not impossible to understand. To help

    organizations become more effective at managing change, Right Management examined the

    Overview & executive Summary

    Ready, Get SetChange!

    Organizations have long viewed effective change management as

    a complex and mysterious process that can never be understood or

    managed effectively. Right Management conducted comprehensive

    global research that clearly reveals the relationships that exist

    between change, engagement, leadership, productivity and

    strategic alignment.

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    LEADING ORGANIZATIONAL CHANGE 5

    relationship between change management, organizational performance and engagement, as

    well as the drivers of successful change strategies in an ambitious global study of more than

    28,000 employees in 10 major industry sectors in 15 countries across the globe.

    What do we already know? Previous research has shown employee engagement is directly

    correlated to key business metrics. A key driver of organizational effectiveness, employee

    engagement is a critical measure of person-organization alignment, which is expressed as

    satisfaction, commitment, pride and advocacy.

    But how does change management correlate to engagement? We found that globally, 34% ofemployees reported being fully engaged, and of those employees, 76% responded favorably

    when asked to report on their organizations performance in key areas impacting change

    management. From this, we are able to see a strong relationship between engagement and

    change management. However, of the 66% of employees who reported being disengaged,

    only 33% reported favorably on their organizations ability to manage change. Clearly, there

    is significant need and opportunity to assess current change management strategies, not

    only to improve engagement, but to ensure change initiatives are successful.

    Research has found that companies reporting high engagement levels achieve

    significantly better results, including29% ; they are also50% kto have above-average customer loyalty and are 44% kto turn aboveaverage profits1. Research has also shown that highly engaged workgroups are 50% p 33% pf. Their retention rates are 44% and 56%2. Clearly, engagement matters.

    1 Izzo, John B. & Withers, P. Values Shift: The New Work Ethic & What it Means for Business. Prentice Hall Canada, 200 0.

    2 Weir, J. HR.com. 2003. Repor ting findings of First, Break All the Rules, by Marcus Buckingham and Cur t Coffman andNow, Discover Your Strengths, by Marcus Buckingham and Donald Clif ton.

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    LEADING ORGANIZATIONAL CHANGE6

    While our study looked at many drivers of effective change management, certain workplacepractices had greater impact on change effectiveness than others. The top global drivers include:

    1. Senior leaders implement effective change

    2. Safe and healthy workplace

    3. Efficient work processes and people systems

    4. Fit-for-purpose structure

    5. Open and honest communication

    6. Employees empowered to make changes to the way things are done

    7. Teamwork between business units/departments

    8. Resources to do the job well

    9. Line managers have appropriate skills

    Our research showed that these important drivers for effective change management are not

    being executed well. Global results revealed that less than one in two employees work in

    organizations where senior leaders are perceived to implement change effectively

    and only one in three people believe that the reasons for decisions are fully explained.

    The change management methodology needs to take into account different roles and

    capabilities at all levels of the organization senior leaders, line managers and staff as

    well as people systems and processes, structure, culture, customer focus and strategy. In

    addition, organizations need to determine ways to measure success, pinpoint goals and

    periodically assess whether or not they are on track.

    Effective implementation means careful planning, communication and facilitation of change

    the responsibility of senior leaders. But leaders also need to involve their workforce in change,

    not just impose it. People are not always prepared to successfully cope with change, thwarting

    the organizations ability to meet objectives. Change is often perceived as threatening and can

    be distracting and disruptive to your organizations ability to operate efficiently.

    How can an organization effectively address the challenges change brings? By understanding

    and addressing behaviors that create obstacles, an agile organization can be trained to handle

    change, not only as a one-time event, but also on an on-going basis. In fact, effective change

    management should be part of a larger strategic workforce management approach focusing

    on improving overall performance to drive desired business results.

    Change managed well will ensure your workforce is engaged and able to adapt to new

    strategies, structures, processes and systems, while maintaining business continuity

    ensuring the organizations ability to function effectively, perform at a higher level and position

    itself for growth.

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    LEADING ORGANIZATIONAL CHANGE 7

    As s

    bsss hA:

    How do we retain key talent and keep them engaged during

    a period of constant change?

    soo:

    A leading global communications provider, was facing declining employee engagement and retention

    of key talent. The business was going through constant changes as it adapted its offerings to the

    changing economy and, as a result, continuously altered employee responsibilities. Employees were

    confused, not knowing or understanding organizational goals and their role in achieving them, and

    were discouraged by mostly horizontal career paths rather than vertical growth.

    The company engaged Right Management to implement a change management program designed to

    increase the agility of both staff and leadership and improve their effectiveness in navigating change.

    The end goal was to improve morale and engagement, decrease unwanted turnover and minimize

    disruption to productivity during change. A core component of the program was to equip leaders to be

    better prepared to lead their teams through change and enhance their overall leadership capacity.

    The client selected pilot sessions to be conducted in the United States, United Kingdom, Brazil and

    Singapore. Individual employees participated in Change Assessment pre-work followed by a four-hour

    Navigating Change workshop. Leaders and managers also completed pre-work in advance of their

    six-hour Leading through Change workshop. The sessions have subsequently been implemented

    in 14 languages across all geographies. Early feedback from the client has been very positive. The

    Change Assessment pre-work was deemed critical to informing leaders on the relative state of the

    change process for each of the key participant groups. The organization is also experiencing a positive

    impact with employees at all levels being more adaptable to change.

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    LEADING ORGANIZATIONAL CHANGE8

    At the same time, we found that many companies fall short when it comes to change

    management, failing to set realistic and measurable goals, not defining where they want to

    go or knowing when they get there, and poor understanding of who will be impacted andhow they will respond. Specifically, we found:

    h bs Po oAzAos AA hA A o s o .

    A strong relationship exists between financial performance and effective change manage-

    ment. In top-performing companies (those with or defined as achieving higher revenue,

    above-average customer loyalty and above-average profits), 60% of employees responded

    that change is handled effectively in my organization compared to 16% of employees in

    below-average performers.

    boo :

    Organizations that effectively plan for and communicate change, while allowing their people

    to become actively involved in the change process, are taking positive action to ensure their

    workforce is adequately prepared and positioned to perform at higher levels.

    1: Relationship Between Change Management and Organizational Performance

    Key FindingS

    Imperatives for Change Management

    Our study demonstrated that effective change management is

    correlated to several key metrics, such as employee engagement

    and retention critical to organizational performance.

    hA s hA oAzAo b oAzAo PoA

    One of the best performingorganizations in its sector(s)

    Above averageperformer

    Averageperformer

    Below averageperformer Favorable

    0% 20% 40% 60% 80% 100%

    60%

    51%

    34%

    16%

    Global Benchmarking Study, December 2008

    Base: 28,810 Global Employees

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    LEADING ORGANIZATIONAL CHANGE 9

    ss hA hA o Pos A o h oAzAos hA Poss.

    Only 43% of employees globally agreed or strongly agreed the organization was able to

    handle change effectively. Dramatic differences exist among countries regarding employees

    confidence in the organizations ability to handle change. For example, in India, two out of

    three respondents are confident in their organizations ability to handle change. However, in

    Japan, three out of four employees did not believe change was handled effectively. On average,

    globally, at least one in three believe their organization does not handle change effectively.

    This is most pronounced in Sweden, Japan, United Kingdom, France and South Korea.

    boo :

    Ineffective communication and a lack of understanding for the rationale prompting the

    change can impact confidence. Leaders have a clear responsibility to effectively articulate

    reasons for change and the organizations plan to implement the change.

    2: Change is Handled Effectively in My Organization (by Country)

    hA s hA oAzAo b o

    INDIA

    NEW ZEALAND

    US

    BRAZIL

    CHINA

    AUSTRALIA

    CANADA

    UK

    DENMARK

    GERMANY

    NORWAY

    FRANCE

    SWEDEN

    SOUTH KOREA

    JAPAN

    0% 25% 50% 75% 100%

    Global Benchmarking Study, December 2008

    Base: 28,810 Global Employees

    63%

    50%

    49%

    48%

    47%

    47%

    46%

    43%

    43%

    42%

    41%

    34%

    32%

    31%

    24%

    28%

    31%

    32%

    34%

    38%

    33%

    33%

    34%

    37%

    40%

    38%

    38%

    36%

    45%

    49%

    9%

    19%

    19%

    17%

    16%

    20%

    21%

    23%

    19%

    18%

    21%

    27%

    32%

    24%

    27%

    Strongly agree/

    Agree

    Partly agree &

    Partly disagree

    Disagree/

    Strongly disagree

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    LEADING ORGANIZATIONAL CHANGE10

    hA AA

    CHANGE MANAGEMENT

    I am encouraged to come up withnew and better ways of doing things

    Senior leaders ensure thatprojects are completed

    My immediate manager has the skillsto manage change effectively

    My immediate manager keeps me informedabout changes happening in my organization

    My immediate manager actson my ideas and suggestions

    Senior leaders respond appropriatelyto changing external conditions

    People can make appropriate changes to theway things are done in my organization

    Senior leaders communicate effectivelyabout changes in my organization

    Change is handled effectivelyin my organization

    Senior leaders implement changeeffectively in my organization

    People in my organizationdo what they say they will do

    Global Benchmarking Study, December 2008

    Base: 28,810 Global Employees

    As o oP bhAos ssA o AA hA .

    More than half of employees did not believe that senior leaders effectively implementedchange or that change was handled effectively in their organization. The biggest downfall

    for senior leaders is the perception that they do not follow through on what they say they

    will do. Less than half (47%) agreed that senior leaders communicated change effectively.

    Additionally, 54% of employees doubted senior leaders ability to respond appropriately to

    changing external conditions. In some countries the responses were even less favorable.

    Only 35% of respondents in Norway and 30% of those in France felt that senior leaders

    implement change effectively in my organization.

    Keeping employees informed about what is happening in the organization is also an

    important behavior but only half of employees surveyed agreed that it was done well.

    In Australia and New Zealand, slightly more, 54%, reported favorably, but only 41% in Asia

    Pacific could report the same. Leaders also need to recognize the need to give employees avoice in the change process, rather than dictate changes. Less than half, only 45%, felt they

    had an opportunity to make changes.

    boo :

    To achieve success, leaders want to ensure messages are communicated openly and

    honestly, keep employees informed, solicit feedback from those impacted by the change,

    and commit to meeting expectations set by leadership. Ultimately, the responsibility for

    managing change is with senior leaders and managers. Failing to address these behaviors

    will derail the companys workforce and, ultimately, its ability to perform.

    3: Drivers of Effective Change Management

    0% 25% 50% 75% 100%

    48%

    60%

    55%

    50%

    50%

    49%

    46%

    45%

    43%

    43%

    42%

    40%

    32%

    25%

    31%

    27%

    28%

    32%

    34%

    36%

    32%

    36%

    34%

    39%

    20%

    15%

    15%

    22%

    22%

    19%

    20%

    19%

    24%

    21%

    24%

    21%

    Strongly agree/

    Agree

    Partly agree &

    Partly disagree

    Disagree/

    Strongly disagree

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    LEADING ORGANIZATIONAL CHANGE 11

    hA AA s o Po A A bsss s.

    Our findings revealed that an organizations ability to effectively execute change correlates tothe organizations ability to retain talent and attract new talent as well. In addition, job

    confidence is negatively impacted by poor change management. Specifically, we found:

    The effectiveness of change implementation directly corresponds to employee engagement.

    Where employees reported that change was not handled well in their organizations they were

    overwhelmingly likely to be disengaged (94%). But where employees reported that leadership

    managed change effectively, 40% were not engaged and 60% were engaged.

    boo :

    How do you define effective? Leaders will most likely be viewed as effective when

    demonstrating important leadership behaviors, such as communicating with employees,

    engaging them in meaningful discussions about the change and how they will be impacted,and asking employees for input on decisions that will impact them.

    4: Change Is Managed Effectively in My Organization

    Organizations that do not manage change well are four times more likely to lose talent.

    Twenty percent of employees who perceived change was not handled effectively indicated they

    planned to leave within one year versus only 5% of employees who held a favorable view. Those

    with a favorable view reported they planned to stay with the organization for at least five years.Retaining talent is critical to an organizations ability to develop leadership bench strength, plan

    for succession, adequately meet workforce skill and capability needs, and grow the business

    boo :

    By looking for ways to improve morale and enhance leadership capability during change,

    organizations can increase retention and minimize disruptions to productivity and engagement.

    40%

    60%

    Engaged

    Not Engaged

    Global Benchmarking Study, December 2008

    Base: 28,810 Global Employees

    PA o hA o Po A

    Change managed well

    Change not managed well

    0% 20% 40% 60% 80% 100%

    94%

    6%

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    LEADING ORGANIZATIONAL CHANGE12

    AoshP bW hA s hA oAzAo

    A o o sA

    5:Relationship Between Effective Change Management and Intention to Stay

    Plan to stay for

    under 1 year

    Plan to stay for 1 to

    less than 5 years

    Plan to stay for at

    least 5 years

    Favorable

    Unfavorable

    Global Benchmarking Study, December 2008

    Base: 28,810 Global Employees

    0% 25% 50% 75% 100%

    Ineffective change management can lead to lower levels of job confidence.

    Job confidence levels have a strong correlation to ability to handle change. Our study

    asked employees to assess their confidence in not being made redundant within the next

    12 months and their confidence in finding a similar job and pay within three months. In

    companies where employees reported that change management was not handled well,

    45% of employees expressed favorable feelings about job confidence while 32% did not.

    This is in stark contrast to organizations with effective change management, where 80%

    of respondents had positive feelings about job confidence versus only 7% who did not.Confidence was highest in China (76%) then followed by New Zealand (73%), India (72%),

    Germany (71%), Canada (71%) and Norway (71%). The lowest confidence levels were

    reported in Japan (53%) and the UK (59%). Confidence in finding a similar job and pay

    within three months was highest in India (72%) and China (65%). The lowest confidence was

    reported in Japan (24%), France (34%), Sweden (36%) and the UK (40%).

    boo :

    For organizations that want to improve the job confidence levels of employees, our findings

    revealed that when managing change, leaders should ensure there is clarity around reporting

    structures, provide a meaningful forum for employees to express their opinions, make certain

    employees understand the career opportunities available to them and give employees theautonomy needed to perform their job well.

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    LEADING ORGANIZATIONAL CHANGE 13

    PA o hA o Job o

    PA o hA o A AAo

    Global Benchmarking Study, December 2008

    Base: 28,810 Global Employees

    Global Benchmarking Study, December 2008

    Base: 28,810 Global Employees

    Change

    managed well

    Change not

    managed well

    Change

    managed well

    Change not

    managed well

    0% 20% 40% 60% 80% 100%

    0% 20% 40% 60% 80% 100%

    32%

    45%

    80%

    7%

    Ineffective change management negatively impacts an organizations ability

    to attract talent.

    When employees reported that change was managed poorly in their organizations, 75% of

    respondents had concerns with their companys ability to attract talent, while only 7% did not.

    At the same time, just 9% of employees who viewed change management as effective felt that

    talent attraction was weak versus 67% who responded favorably.

    boo :

    Ineffective change management can result in decreased employee trust in the organizationsstated values and the employment brand. This decline in trust will ultimately affect how the

    organization is viewed externally, impairing its ability to attract the new leaders and skilled

    talent needed to grow the business.

    7:Impact of Change on Talent Attraction

    Favorable

    Unfavorable

    Favorable

    Unfavorable

    6:Impact of Change on Job Confidence

    75%

    7%

    9%

    67%

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    LEADING ORGANIZATIONAL CHANGE14

    Once senior leadership provides the vision on what change is needed, the organization must

    then set out to develop and execute a change management plan and engage their workforce

    in the process. Our recommendations include:

    1. s Assss oos o AA Ah Pos hA Ass.

    To create a comprehensive change management system, leaders need to conduct anorganizational readiness assessment. One assessment is designed to evaluate structural

    issues. Another assessment evaluates the change effectiveness skills and abilities of

    employees by analyzing the specific behaviors and characteristics needed to adapt easily

    to sometimes difficult changing circumstances such as an ability to remain calm even in

    stressful situations and to reach mutually beneficial outcomes during a time of change.

    With the right assessment tool, employees at all levels of the organization can develop

    an understanding of their strengths and weaknesses in how they respond to change. In

    addition, managers can use the results to provide guidance to their team. In particular, when

    employees impacted by the change initiative have the opportunity to assess their unique

    behaviors and responses to change, the results provide a common language to use in group

    discussions. At the organizational level, leaders can employ the information to understand

    how the business will react to change.

    Creating Change That Works forYour Organization

    To ensure that change initiatives are successful, organizations

    need to develop a workforce adept at handling change in

    whatever form it takes. This undertaking requires not only

    understanding and fostering effective behaviors and attitudes, but

    also developing a comprehensive organizational process infusingchange agility throughout the company a system ensuring the

    right organizational structures are in place and that individuals

    have the appropriate capabilities required at each level.

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    LEADING ORGANIZATIONAL CHANGE 15

    What characteristics tend to pose a challenge? Right Management conducted 5,000 change

    readiness assessments designed to assess an employees likely response to change. The

    results enabled us to predict several areas of concern, which included low adaptability,

    low self assurance and impaired ability to reach agreement. When planning for change,

    organizations should consider those characteristics in particular when determining how to

    help their employees respond to change.

    Assss hA Ass

    Right Managements change effectiveness assessment predicts an employees likely response to

    change. Based on the results of 5,000 assessments, we looked at the most common responses

    to change and grouped results into two categories: Concern and Strength.

    ff b

    The implication for organizations is that nearly half of all employees will struggle with some aspect of

    change which is being tested to extreme measures with the economic uncertainty we are currently

    facing creating multiple barriers to impede the success of the change initiative.

    The good news is that 48% of respondents fall into the Strength category for Building Relationships.

    Collaboration, teamwork and collegiality are critical to achieving goals. Identifying individuals that know

    how to interact appropriately with others and build and maintain interpersonal relationships will be an

    important part of ensuring success in your change initiative. This is particularly essential for those who

    need to lead changes in their organizations.

    Ap

    sf A

    A

    b p

    f

    P

    38%

    43%

    44%

    48%

    31%

    22%

    Concern Strength Respondents

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    LEADING ORGANIZATIONAL CHANGE16

    As s

    bsss hA:

    How do we sustain productivity during a global reinvention process?

    soo:

    A global industry leader in office furniture, was preparing for a global reinvention process that involved

    transitioning and streamlining all workloads into two main headquarter departments: Logistics/

    Transportation and Finance. Eighty percent of employees were transitioned from other work areas to

    the newly formed internal departments and a further 20% were redeployed to the newly charted roleswithin their existing departments. The organization wanted to proactively provide change tools for

    leaders and employees to maintain productivity, motivation and morale, while also fostering trust and

    commitment to their stated values and achieving continued client service excellence.

    Right Management was selected as the partner with the best expertise to help achieve these

    objectives. Two workshops were implemented: Navigating Change for employees and Leading

    through Change for managers. The pre- and post-workshop surveys showed dramatic increases in

    change readiness for all levels of staff:

    After completing the program, 94% of the Leading through Change participants knew how to lead

    their team through changes versus only 35% who thought they were capable before the workshop.

    94% of the Navigating Change participants knew how to adapt to change and increase their

    personal effectiveness during times of change versus 14% who thought so prior to the workshop.

    The client feedback has been overwhelmingly positive. Participants gained a common, consistent

    language, greater understanding of the change process, tools and strategies to support them through

    the process, and a safe place to come together and share fears and concerns. Right Managements

    services assisted the company in demonstrating its core values to treat people with dignity and

    respect and promote positive relationships. And most importantly, the end goal of sustaining

    productivity during this period of change was achieved.

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    LEADING ORGANIZATIONAL CHANGE 17

    2. b hA AA APAbs A A oAzAoA s.To become a change-ready, agile company, each organizational level senior leadership,

    middle managers and staff needs to learn how to effectively respond to and manage

    change. But these segments require different capabilities, depending on their roles and the

    amount of control they exert over the process. Specifically:

    Senior leaders initiate, guide and champion change, ensuring engagement among

    the rest of the organization.

    It is up to senior leaders to make sure that their plan takes into account not just the

    immediate change but other changes likely to occur in the future. It also involves engaging

    the workforce early in the process. To ensure engagement and alignment, senior leaders

    benefit from encouraging input from employees, keeping employees informed about the

    change process, valuing and acting on ideas, following through on actions and modelingappropriate responses to change. That, in turn, includes equipping line managers with the

    right skills such as developing a common, consistent language to talk about the change

    needed to help the rest of the organization adapt to and embrace the change.

    Middle managers make change happen, but have little control over the direction.

    Indeed, middle managers may be in the most difficult position: They must facilitate change

    and help their employees understand the reasons and objectives for the change. They

    also provide direction and support on ways to respond positively and effectively to the

    change that impacts not only staff, but them as well. Additionally, middle managers must

    be equipped with the skills and resources needed to help their employees such as how

    to better understand typical responses to change, the cycles of change and how to guidepeople through the change.

    Employees impacted by change must adapt and grow.

    The majority of employees have no control over the change decision. But they need to

    continue to meet performance objectives during and after a change event. To that end,

    employees may need help creating strategies to overcome natural resistance to change.

    Through assessments, workshops and team meetings, organizations can show employees

    how to recognize their own styles, anticipate their reactions to change, understand their role

    in making change work, set measurable goals and develop a plan of action. Most importantly,

    employees need to be treated as more than passive recipients of change they need to

    be involved. Ensure that employees understand the need for change why it s important,

    their role in the process, what is expected of them and provide a means to contribute and

    influence the process.

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    LEADING ORGANIZATIONAL CHANGE18

    8: Targeted Approach for Effective Change Management

    A APPoAh o hA AA

    1. oAzAoA hA

    A: Those required to drive change

    and control decisions associated with change

    2. A hoh hA

    A: Those required to lead through

    change and have no control of change decisions

    3. AA hAA: Those impacted by change

    and have no control of change decisions

    p

    3. A o PPos, s A os.

    Structure is the game plan for getting work done not just an organization flowchart. It

    ensures the right people are doing the right work. Good structure means every employee has

    a clear role and set of accountabilities, as well as the authority required to perform. A highly

    bureaucratic structure might impede the ability to adapt quickly, as would a siloed business

    thats busy competing internally rather than adding value to the change agenda. In addition,employees may not be able to adapt to change if the design of their jobs doesnt permit it or

    if they are not given the authority to make the necessary changes to their work needed to

    achieve the new company direction or focus. For that reason, organizations need to conduct

    a high-level overview of jobs considered to be critical to building agility and re-evaluate job

    descriptions, if necessary. Finally, organizations have to examine whether their operating

    model and culture are conducive to change agility.

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    LEADING ORGANIZATIONAL CHANGE 19

    As s

    bsss hA:

    How can we adapt our culture to embrace changing market needs

    and respond at a rapid rate?

    soo:

    An international financial services group, was perceived in the market as change weary. The CEOs

    strategic vision was for change to occur at a rapid rate and to equip the bank to respond quickly

    and nimbly to strong external competitive pressures. The risks associated with doing nothing and not

    changing the culture and attitudes included a negative impact on employee engagement, retention and

    motivation, while also perpetuating the perception that leaders had been ineffective in managing change.

    Approximately 2,680 employees have attended the change management workshops provided by Right

    Management over a two-year period. Feedback has been extremely positive and many participants have

    enjoyed both the theoretical and practical elements of the sessions. The change management solutions

    are becoming embedded into the organizations overall change processes and ingrained in its culture.

    A core component of Right Managements solution was the development of a Change Report which

    is based on the pre-assessments implemented to all staf f. This provided a real differentiator by

    sharing objective data for individuals to better understand their behaviors when mapped against Right

    Managements proprietary Delta Model, which describes the traits and behaviors conducive to change

    management. This enabled them to self-manage more effectively during change. The assessments

    have also been used for further team development after the workshops so that teams can gain greater

    insight into their own profiles and change readiness.

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    LEADING ORGANIZATIONAL CHANGE20

    4. P PoP sss A Posss.These are the various systems and processes that organizations utilize to send messages,

    share information and make well-informed decisions. These include communication systems,

    performance management, recruitment and selection, and remuneration and reward. Effective

    change management relies heavily on people systems that work together to create change

    agility to implement and embed the change when it occurs. These systems are viewed as

    an extension of leadership creating consistency and trust. To create change agility, it

    is critical to ensure that performance management, succession management, and talent

    attraction and retention systems are effectively working together. In the area of HR processes,

    organizations need to ensure they dont have legacy procedures that might inhibit agility,

    while compensation and reward systems may provide incentives for the wrong behaviors.

    5. As sss.

    To determine how effective their efforts have been, organizations need methods for

    measuring success. Best practice is to define goals at the outset and the metrics to be used

    for assessing whether those objectives have been achieved. Key business metrics will be

    unique to the organization. In some companies, for example, productivity may be important;

    while in another, customer retention may be essential. Other key metrics might include

    employee retention and the absenteeism rate, since a period of change disruption, handled

    incorrectly, could cause a higher rate of employee defections and absences. In addition,

    organizations can create mechanisms for receiving feedback, such as employee surveys or

    focus groups that can be conducted at various points during and after the change.

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    LEADING ORGANIZATIONAL CHANGE 21

    Moving to the Next Level:Agile and Ready

    A successful change management approach

    combines proven methodologies, assessments ,

    and tools focusing on business performance.

    Our solution is designed to equip organizations,

    leaders and individuals with the capabilities andagility to work effectively through change to

    ensure high levels of engagement, performance

    and productivity. To create an agile organizational

    culture able to adapt to any change effectively,

    our strategy encompasses the entire organization:

    executives who drive change and are instrumental

    in creating overall strategy, ensuring there is

    employee engagement and open communication;

    middle management, who make the change work

    and help employees more directly; and theemployees within the organization, who are directly

    affected, have little or no control over decisions,

    but are responsible for implementing change.

    Our process includes four phases:

    PhAs so

    Evaluation of the current climate of change readiness within the organization to determine context against

    which the change management program can be delivered.

    PhAs A A A As/AAs

    Participation in skill development programs and workshops, on-line assessments, action learning activities

    geared toward helping leaders understand their response to change and learn methods for successful

    communication and execution of change.

    PhAs A A A As

    Participation in skill development programs and workshops, on-line assessments, and action learning

    activities geared toward helping individuals understand their responses to change, barriers to success and

    behaviors that are effective.

    PhAs AAo A W

    Evaluation, measurement and analysis of results to ensure desired progress and business impact are achieved.

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    LEADING ORGANIZATIONAL CHANGE22

    Change is constant. But more importantly, change is necessary.

    While the strategy and objectives behind change initiatives

    may differ from one organization to another, all face the same

    imperative: Companies must be adept at managing change that

    is necessary for growth and survival.

    Yet, organizations tend to underestimate the importance of managing change effectively

    through the people who architect, execute and realize change initiatives inevitably

    undermining their ability to achieve the goals the change initiative was designed to produce.

    Effective change management requires identifying and developing behaviors, attitudes and

    processes that support change and to do so in a systemic way building change agility into

    the organizations fabric. Failure to act can lead to reduced productivity, decreased levels of

    trust, declines in engagement scores, increased costs from poor work transitions and new

    process implementation, increased attrition and poor talent attraction.

    Clearly, the need for successful change management is of crucial importance in todays

    competitive and fast-paced environment. Our research highlights the strong correlation

    between effective change management and high levels of employee engagement, whichimpacts productivity and performance. Organizations must master the skills needed to

    manage change so theyre ready to react quickly as business demands shift . Indeed, the one

    constant in life is change and companies able to respond with agility will be better able to

    compete in any economy in the global market. Your business depends upon it.

    cOncluSiOn

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    LEADING ORGANIZATIONAL CHANGE 23

    Michael HaidSenior Vice President

    s

    As a global thought leader for Right Managements

    Talent Management practice, Michael drives the

    strategy and execution of the organizations Talent

    Assessment capabilities worldwide. He supports a

    network of Regional Champions and Subject Matter

    Experts and leads the design and implementationof global, scalable solutions delivered to meet

    critical and emerging business needs. These key

    capabilities and associated client solutions focus

    on competency modeling and individual, team, and

    organizational assessment.

    Deborah Schroeder-Saulnier, D.Mgt.Senior Vice President

    s

    As a global thought leader for Right Managements

    Talent Management practice, Deborah drives the

    global strategy and execution of the organizationsLeader Development, Organizational Effectiveness

    and Employee Engagement capabilities worldwide.

    She supports a network of Regional Champions

    and Subject Matter Experts and leads the design

    and implementation of global, scalable solutions

    delivered to meet critical and emerging business

    needs. These key capabilities and associated

    client solutions focus on the areas of leadership,

    succession, performance management, strategy

    and strategic workforce align-ment, change

    management, wellness and productivity

    management, workforce engagement and

    retention strategies.

    Jamie Sims, BA (Hons), MPsych, MBAManaging Principal

    Jamie is a registered psychologist and assessment specialist.

    She currently heads Right Managements Talent Assessment

    practice in Australia and New Zealand. Since joining Right

    Management, Jamie has been involved in a range of national

    and global assessment and leadership development

    consulting projects. Jamie also provides individual coaching

    using an evidence-based approach and Cognitive Behavioraland solution-focused techniques.

    Hilda WangData Manager

    Hilda Wang is the Data Manager for Right Management in

    Australia. She has extensive experience in analyzing data,

    data presentation and benchmarking. Hilda has worked with

    clients from a range of industries spanning both the private

    and public sector, including banking and finance, mining and

    resources, hospital and health care, manufacturing, utilities

    and instrumentalities, communication and IT.

    Mark Urban,Ph.D.Vice President, Talent Management Consultant

    As Vice President and Talent Management Consultant

    based in the Chicago area, Mark works with clients to identify

    their unique drivers of employee engagement and linkages

    to operational and financial results. These analyses inform

    his work with senior leaders to formulate strategic and

    tactical plans which target increasing employee engagement,

    and subsequently, business performance. Mark received his

    Ph.D. in Industrial/Organizational Psychology from Ohio

    State University.

    Contributors

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    Right Management Inc. 1818 Market Street, 33rd Floor Philadelphia, PA 19103-3614 ..

    Product # 6100-4US A MANPOWER COMPANY

    Right Management (www.right.com) is the talent and career management

    expert within Manpower, the global leader in employment services. Right

    Management helps clients win in the changing world of work by designing

    and executing workforce solutions that align talent strategy with business

    strategy. Our expertise spans Talent Assessment, Leader Development,

    Organizational Effectiveness, Employee Engagement, and Workforce

    Transition and Outplacement. With 300 offices in over 50 countries, Right

    Management partners with companies of all sizes. More than 80% of

    Fortune 500 companies are currently working with us to help them grow

    talent, reduce costs and accelerate performance.

    About Right Management